Connecticut Seal

General Assembly

 

Raised Bill No. 6510

January Session, 2009

 

LCO No. 3754

 

*03754_______ET_*

Referred to Committee on Energy and Technology

 

Introduced by:

 

(ET)

 

AN ACT ESTABLISHING A PUBLIC POWER AUTHORITY.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 4-5 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

As used in sections 4-6, 4-7 and 4-8, the term "department head" means Secretary of the Office of Policy and Management, Commissioner of Administrative Services, Commissioner of Revenue Services, Banking Commissioner, Commissioner of Children and Families, Commissioner of Consumer Protection, Commissioner of Correction, Commissioner of Economic and Community Development, State Board of Education, Commissioner of Emergency Management and Homeland Security, Commissioner of Environmental Protection, Commissioner of Agriculture, Commissioner of Public Health, Insurance Commissioner, Labor Commissioner, Liquor Control Commission, Commissioner of Mental Health and Addiction Services, Commissioner of Public Safety, Commissioner of Social Services, Commissioner of Developmental Services, Commissioner of Motor Vehicles, Commissioner of Transportation, Commissioner of Public Works, Commissioner of Veterans' Affairs, Commissioner of Health Care Access, Chief Information Officer, the chairperson of the Public Utilities Control Authority, the executive director of the Board of Education and Services for the Blind, the chairperson of the Connecticut Electric Authority, the executive director of the Connecticut Commission on Culture and Tourism, the Ombudsman for Property Rights and the executive director of the Office of Military Affairs. As used in sections 4-6 and 4-7, "department head" also means the Commissioner of Education.

Sec. 2. (NEW) (Effective October 1, 2009) (a) There is established a Connecticut Electric Authority, which shall consist of seven members: (1) One with experience in electricity regulation appointed by the president pro tempore of the Senate; (2) one with experience in electricity generation appointed by the speaker of the House of Representatives; (3) two with experience in electricity consumer issues appointed by the majority leaders of the Senate and the House of Representatives; (4) two with experience in electricity conservation issues appointed by the minority leaders of the Senate and the House of Representatives; and (5) the chairperson appointed by the Governor pursuant to section 4-7 of the general statutes. The members appointed pursuant to subdivisions (1) to (4), inclusive, of this subsection shall serve two-year terms coterminous with the term of the appointing authority. The chairperson of the Connecticut Electric Authority shall serve a four-year term, coterminous with the Governor's term, or, if said chairperson is appointed during the Governor's term, the appointment shall be for the remainder of the Governor's term.

(b) The Connecticut Electric Authority shall (1) increase the state's energy independence by promoting conservation and efficiency and the use of diverse indigenous and regional electric resources; (2) encourage the use of new electric technologies, particularly technologies that support economic development in the state and promote environmental sustainability; (3) minimize costs of electric services to state consumers while maintaining reliable service; (4) discourage undue price volatility of electric service; (5) encourage competition, when in the interests of state consumers; and (6) serve as the state's electric planning agency. The authority may own and operate electric power plants and may provide financial assistance, including low-interest loans to encourage the development of necessary electric generation facilities by the electric distribution companies or private entities, provided electricity generated at such facilities shall be sold for use by Connecticut consumers at cost of service with a reasonable rate of return. The authority may enter into contracts with electricity generators, suppliers and consumers and such other persons as necessary to carry out the purposes of this section.

(c) The authority under the direction of the executive director may hire personnel and adopt any policies for internal organization as necessary and may contract with the Connecticut Municipal Electric Energy Cooperative for administrative services.

Sec. 3. Section 16-245m of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) (1) On and after [January 1, 2000] October 1, 2009, the Department of Public Utility Control shall assess or cause to be assessed a charge of three and one-half mills per kilowatt hour of electricity sold to each end use customer of an electric distribution company to be used to implement the program as provided in this section for conservation and load management programs but not for the amortization of costs incurred prior to July 1, 1997, for such conservation and load management programs.

(2) Notwithstanding the provisions of this section, receipts from such charge shall be disbursed to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005, unless the department shall, on or before October 30, 2003, issue a financing order for each affected electric distribution company in accordance with sections 16-245e to 16-245k, inclusive, to sustain funding of conservation and load management programs by substituting an equivalent amount, as determined by the department in such financing order, of proceeds of rate reduction bonds for disbursement to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005. The department may authorize in such financing order the issuance of rate reduction bonds that substitute for disbursement to the General Fund for receipts of both the charge under this subsection and under subsection (b) of section 16-245n and also may, in its discretion, authorize the issuance of rate reduction bonds under this subsection and subsection (b) of section 16-245n that relate to more than one electric distribution company. The department shall, in such financing order or other appropriate order, offset any increase in the competitive transition assessment necessary to pay principal, premium, if any, interest and expenses of the issuance of such rate reduction bonds by making an equivalent reduction to the charge imposed under this subsection, provided any failure to offset all or any portion of such increase in the competitive transition assessment shall not affect the need to implement the full amount of such increase as required by this subsection and by sections 16-245e to 16-245k, inclusive. Such financing order shall also provide if the rate reduction bonds are not issued, any unrecovered funds expended and committed by the electric distribution companies for conservation and load management programs, provided such expenditures were approved by the department after August 20, 2003, and prior to the date of determination that the rate reduction bonds cannot be issued, shall be recovered by the companies from their respective competitive transition assessment or systems benefits charge but such expenditures shall not exceed four million dollars per month. All receipts from the remaining charge imposed under this subsection, after reduction of such charge to offset the increase in the competitive transition assessment as provided in this subsection, shall be disbursed to the Energy Conservation and Load Management Fund commencing as of July 1, 2003. Any increase in the competitive transition assessment or decrease in the conservation and load management component of an electric distribution company's rates resulting from the issuance of or obligations under rate reduction bonds shall be included as rate adjustments on customer bills.

(b) The electric distribution company shall establish an Energy Conservation and Load Management Fund which shall be held separate and apart from all other funds or accounts. Receipts from the charge imposed under subsection (a) of this section shall be deposited into the fund. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fiscal year next succeeding. Disbursements from the fund by electric distribution companies to carry out the plan developed under subsection (d) of this section shall be authorized by the [Department of Public Utility Control] Connecticut Electric Authority upon its approval of such plan.

(c) The [Department of Public Utility Control] Connecticut Electric Authority shall appoint and convene an Energy Conservation Management Board which shall include representatives of: (1) An environmental group knowledgeable in energy conservation program collaboratives; (2) the Office of Consumer Counsel; (3) the Attorney General; (4) the Department of Environmental Protection; (5) the electric distribution companies in whose territories the activities take place for such programs; (6) a state-wide manufacturing association; (7) a chamber of commerce; (8) a state-wide business association; (9) a state-wide retail organization; (10) a representative of a municipal electric energy cooperative created pursuant to chapter 101a; (11) two representatives selected by the gas companies in this state; and (12) residential customers. Such members shall serve for a period of five years and may be reappointed. Representatives of the gas companies shall not vote on matters unrelated to gas conservation. Representatives of the electric distribution companies and the municipal electric energy cooperative shall not vote on matters unrelated to electricity conservation.

(d) (1) The Energy Conservation Management Board shall advise and assist the electric distribution companies in the development and implementation of a comprehensive plan, which plan shall be approved by the [Department of Public Utility Control] Connecticut Electric Authority, to implement cost-effective energy conservation programs and market transformation initiatives. The plan shall contain specific goals for reducing electricity use in the state that shall be consistent with such comprehensive plan and shall include an estimate of the systemic savings that will be achieved if such goals are met. Such systemic savings shall be no less than the total commitment of funds under this section over the period covered by the plan. Each program contained in the plan shall be reviewed by the electric distribution company and either accepted or rejected by the Energy Conservation Management Board prior to submission to the department for approval. The Energy Conservation Management Board shall, as part of its review, examine opportunities to offer joint programs providing similar efficiency measures that save more than one fuel resource or otherwise to coordinate programs targeted at saving more than one fuel resource. Any costs for joint programs shall be allocated equitably among the conservation programs. The Energy Conservation Management Board shall give preference to projects that maximize the reduction of federally mandated congestion charges. The [Department of Public Utility Control] Connecticut Electric Authority shall, in an uncontested proceeding during which the department may hold a public hearing, approve, modify or reject the comprehensive plan prepared pursuant to this subsection.

(2) There shall be a joint committee of the Energy Conservation Management Board and the Renewable Energy Investments Board. The board and the advisory committee shall each appoint members to such joint committee. The joint committee shall examine opportunities to coordinate the programs and activities funded by the Renewable Energy Investment Fund pursuant to section 16-245n with the programs and activities contained in the plan developed under this subsection to reduce the long-term cost, environmental impacts and security risks of energy in the state. Such joint committee shall hold its first meeting on or before August 1, 2005.

(3) Programs included in the plan developed under subdivision (1) of this subsection shall be screened through cost-effectiveness testing which compares the value and payback period of program benefits to program costs to ensure that programs are designed to obtain energy savings and system benefits, including mitigation of federally mandated congestion charges, whose value is greater than the costs of the programs. Cost-effectiveness testing shall utilize available information obtained from real-time monitoring systems to ensure accurate validation and verification of energy use. Such testing shall include an analysis of the effects of investments on increasing the state's load factor. Program cost-effectiveness shall be reviewed annually, or otherwise as is practicable. If a program is determined to fail the cost-effectiveness test as part of the review process, it shall either be modified to meet the test or shall be terminated. On or before March 1, 2005, and on or before March first annually thereafter, the board shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment (A) that documents expenditures and fund balances and evaluates the cost-effectiveness of such programs conducted in the preceding year, and (B) that documents the extent to and manner in which the programs of such board collaborated and cooperated with programs, established under section 7-233y, of municipal electric energy cooperatives. To maximize the reduction of federally mandated congestion charges, programs in the plan may allow for disproportionate allocations between the amount of contributions to the Energy Conservation and Load Management Funds by a certain rate class and the programs that benefit such a rate class. Before conducting such evaluation, the board shall consult with the Renewable Energy Investments Board. The report shall include a description of the activities undertaken during the reporting period jointly or in collaboration with the Renewable Energy Investment Fund established pursuant to subsection (c) of section 16-245n.

(4) Programs included in the plan developed under subdivision (1) of this subsection may include, but not be limited to: (A) Conservation and load management programs, including programs that benefit low-income individuals; (B) research, development and commercialization of products or processes which are more energy-efficient than those generally available; (C) development of markets for such products and processes; (D) support for energy use assessment, real-time monitoring systems, engineering studies and services related to new construction or major building renovation; (E) the design, manufacture, commercialization and purchase of energy-efficient appliances and heating, air conditioning and lighting devices; (F) program planning and evaluation; (G) indoor air quality programs relating to energy conservation; (H) joint fuel conservation initiatives programs targeted at reducing consumption of more than one fuel resource; (I) public education regarding conservation; and (J) the demand-side technology programs recommended by the procurement plan approved by the Department of Public Utility Control pursuant to section 16a-3a. Such support may be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and promotional and educational activities. The plan shall also provide for expenditures by the Energy Conservation Management Board for the retention of expert consultants and reasonable administrative costs provided such consultants shall not be employed by, or have any contractual relationship with, an electric distribution company. Such costs shall not exceed five per cent of the total revenue collected from the assessment.

(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, the [Department of Public Utility Control] Connecticut Electric Authority shall authorize the disbursement of a total of one million dollars in each month, commencing with July, 2003, and ending with July, 2005, from the Energy Conservation and Load Management Funds established pursuant to said subsections. The amount disbursed from each Energy Conservation and Load Management Fund shall be proportionately based on the receipts received by each fund. Such disbursements shall be deposited in the General Fund.

(f) No later than December 31, 2006, and no later than December thirty-first every five years thereafter, the Energy Conservation Management Board shall, after consulting with the Renewable Energy Investments Board, conduct an evaluation of the performance of the programs and activities of the fund and submit a report, in accordance with the provisions of section 11-4a, of the evaluation to the joint standing committee of the General Assembly having cognizance of matters relating to energy.

(g) Repealed by P.A. 06-186, S. 91, effective July 1, 2006.

Sec. 4. Section 16-245l of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) The Department of Public Utility Control, in consultation with the Connecticut Electric Authority, shall establish and each electric distribution company shall collect a systems benefits charge to be imposed against all end use customers of each electric distribution company beginning January 1, 2000. The department shall hold a hearing that shall be conducted as a contested case in accordance with chapter 54 to establish the amount of the systems benefits charge. The department may revise the systems benefits charge or any element of said charge as the need arises. The systems benefits charge shall be used to fund (1) the expenses of the public education outreach program developed under subsections (a), (f) and (g) of section 16-244d other than expenses for department staff, (2) the reasonable and proper expenses of the education outreach consultant pursuant to subsection (d) of section 16-244d, (3) the cost of hardship protection measures under sections 16-262c and 16-262d and other hardship protections, including, but not limited to, electric service bill payment programs, funding and technical support for energy assistance, fuel bank and weatherization programs and weatherization services, (4) the payment program to offset tax losses described in section 12-94d, (5) any sums paid to a resource recovery authority pursuant to subsection (b) of section 16-243e, (6) low income conservation programs approved by the Department of Public Utility Control, (7) displaced worker protection costs, (8) unfunded storage and disposal costs for spent nuclear fuel generated before January 1, 2000, approved by the appropriate regulatory agencies, (9) postretirement safe shutdown and site protection costs that are incurred in preparation for decommissioning, (10) decommissioning fund contributions, (11) the costs of temporary electric generation facilities incurred pursuant to section 16-19ss, (12) operating expenses for the Connecticut Electric Authority and the Connecticut Energy Advisory Board, (13) costs associated with the Connecticut electric efficiency partner program established pursuant to section 16-243v, (14) reinvestments and investments in energy efficiency programs and technologies pursuant to section 16a-38l, costs associated with the electricity conservation incentive program established pursuant to section 119 of public act 07-242*, and (15) legal, appraisal and purchase costs of a conservation or land use restriction and other related costs as the department in its discretion deems appropriate, incurred by a municipality on or before January 1, 2000, to ensure the environmental, recreational and scenic preservation of any reservoir located within this state created by a pump storage hydroelectric generating facility. As used in this subsection, "displaced worker protection costs" means the reasonable costs incurred, prior to January 1, 2008, (A) by an electric supplier, exempt wholesale generator, electric company, an operator of a nuclear power generating facility in this state or a generation entity or affiliate arising from the dislocation of any employee other than an officer, provided such dislocation is a result of (i) restructuring of the electric generation market and such dislocation occurs on or after July 1, 1998, or (ii) the closing of a Title IV source or an exempt wholesale generator, as defined in 15 USC 79z-5a, on or after January 1, 2004, as a result of such source's failure to meet requirements imposed as a result of sections 22a-197 and 22a-198 and this section or those Regulations of Connecticut State Agencies adopted by the Department of Environmental Protection, as amended from time to time, in accordance with Executive Order Number 19, issued on May 17, 2000, and provided further such costs result from either the execution of agreements reached through collective bargaining for union employees or from the company's or entity's or affiliate's programs and policies for nonunion employees, and (B) by an electric distribution company or an exempt wholesale generator arising from the retraining of a former employee of an unaffiliated exempt wholesale generator, which employee was involuntarily dislocated on or after January 1, 2004, from such wholesale generator, except for cause. "Displaced worker protection costs" includes costs incurred or projected for severance, retraining, early retirement, outplacement, coverage for surviving spouse insurance benefits and related expenses. "Displaced worker protection costs" does not include those costs included in determining a tax credit pursuant to section 12-217bb.

(b) The amount of the systems benefits charge shall be determined by the department in a general and equitable manner and shall be imposed on all end use customers of each electric distribution company at a rate that is applied equally to all customers of the same class in accordance with methods of allocation in effect on July 1, 1998, provided the system benefits charge shall not be imposed on customers receiving services under a special contract which is in effect on July 1, 1998, until such special contracts expire. The system benefits charge shall be imposed beginning on January 1, 2000, on all customers receiving services under a special contract which are entered into or renewed after July 1, 1998. The systems benefits charge shall have a generally applicable manner of determination that may be measured on the basis of percentages of total costs of retail sales of generation services. The systems benefits charge shall be payable on an equal basis on the same payment terms and shall be eligible or subject to prepayment on an equal basis. Any exemption of the systems benefits charge by customers under a special contract shall not result in an increase in rates to any customer.

Sec. 5. (NEW) (Effective October 1, 2009) (a) Subject to the approval of the Treasurer or the Deputy Treasurer appointed pursuant to section 3-12 of the general statutes, and other applicable limitations of the Connecticut Electric Authority, the authority may borrow money and issue its bonds and notes from time to time and use the proceeds thereof for the purposes of the authority, as provided in section 2 of this act. All such bonds issued by the authority, secured by a special capital reserve fund within the meaning of subsection (b) of section 9 of this act, shall be general obligations of the authority payable out of any revenues or other receipts, funds or moneys of the authority, subject only to any agreements with the holders of particular notes or bonds pledging any particular revenues, receipts, funds or moneys, provided the authority may issue general obligation bonds of the authority without the security of a special capital reserve fund. Any other such bonds or notes not issued in anticipation of the issuance of bonds referred to in the preceding sentence shall be special obligations of the authority payable solely out of any revenues or other receipts, funds or moneys of the authority pledged therefore. All such notes and bonds may be executed and delivered in such manner and at such times, in such form and denominations and of such tenor and maturity or maturities, in bearer or registered form, as to principal and interest or as to principal alone, may be payable at such time or times not exceeding forty years from the date thereof, may be payable at such place or places whether within or without the state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, and may contain such provisions not inconsistent with sections 5 to 10, inclusive, of this act, as shall be provided in the resolution of the authority authorizing the issuance of the bonds and notes.

(b) Issuance by the authority of one or more series of bonds or notes for one or more purposes shall not preclude it from issuing other bonds or notes in connection with the same project or any other projects, but the proceeding wherein any subsequent bonds or notes may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds or notes unless in the resolution authorizing such prior issue the right is reserved to issue subsequent bonds on a parity with such prior issue.

(c) Subject to the approval of the Treasurer or the Deputy Treasurer appointed pursuant to section 3-12 of the general statutes, any bonds or notes of the authority may be sold at such price or prices, at public or private sale, in such manner and from time to time as may be determined by the authority, and the authority may pay all expenses, premiums and commissions it may deem necessary or advantageous in connection with the issuance and sale thereof; and any moneys of the authority, including proceeds from the sale of any bonds and notes, and revenues, receipts and income from any of its projects, may be invested and reinvested in such obligations, securities and other investments, including time deposits or certificates of deposit, or deposited or redeposited in such bank or banks as shall be provided in the resolution or resolutions authorizing the issuance of the bonds and notes.

(d) The authority may issue its bonds for the purpose of refunding any bonds of the authority then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase or maturity of such bonds, and, if deemed advisable by the authority, for the additional purpose of paying all or any part of the cost of constructing and acquiring additions, improvements, extensions or enlargements of a project or any portion thereof. The proceeds of any such bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the authority, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds either on their earliest or any subsequent redemption date, and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the authority.

(e) Whether or not the bonds or notes are of such form and character as to be negotiable instruments under article 8 of title 42a of the general statutes, the bonds or notes shall be and are hereby made negotiable instruments within the meaning of and for all the purposes of article 8 of said title 42a, subject only to the provisions of the bonds or notes for registration.

(f) The principal of and interest on bonds or notes issued by the authority may be secured by a pledge of any revenues and receipts of the authority derived from any project and may be additionally secured by a mortgage or deed of trust covering all or any part of a project, including any additions, improvements, extensions to or enlargements of any projects thereafter made. Such bonds or notes may also be secured by a pledge or assignment of a loan agreement, conditional sale agreement or agreement of sale or by an assignment of the lease of any project for the construction and acquisition of which said bonds or notes are issued and by an assignment of the revenues and receipts derived by the authority from such project. The payments of principal and interest on such bonds or notes may be additionally secured by a pledge of any other property, revenues, moneys or funds available to the authority for such purpose. The resolution authorizing the issuance of any such bonds or notes and any such mortgage or deed of trust or lease or loan agreement, conditional sale agreement or agreement of sale or credit agreement may contain agreements and provisions respecting the establishment of reserves to secure such bonds or notes, the maintenance and insurance of the projects covered thereby, the fixing and collection of rents for any portion thereof leased by the authority to others or the sums to be paid under any conditional sale agreement or agreement of sale entered into by the authority with others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default, the vesting in a trustee or trustees of such property, rights, powers and duties in trust as the authority may determine, which may include any or all of the rights, powers and duties of any trustee appointed by the holders of any bonds and notes and limiting or abrogating the right of the holders of any bonds and notes of the authority to appoint a trustee under the provisions of sections 5 to 10, inclusive, of this act, or limiting the rights, powers and duties of such trustee; provision for a trust agreement by and between the authority and a corporate trust which may be any trust company or bank having the powers of a trust company within or without the state, which agreement may provide for the pledging or assigning of any revenues or assets or income from assets to which or in which the authority has any rights or interest, and may further provide for such other rights and remedies exercisable by the trustee as may be proper for the protection of the holders of any bonds or notes and not otherwise in violation of law, and such agreement may provide for the restriction of the rights of any individual holder of bonds or notes of the authority and may contain any further provisions which are reasonable to delineate further the respective rights, duties, safeguards, responsibilities and liabilities of the authority; persons and collective holders of bonds or notes of the authority and the trustee; and covenants to do or refrain from doing such acts and things as may be necessary or convenient or desirable in order to better secure any bonds or notes of the authority, or which, in the discretion of the authority, will tend to make any bonds or notes to be issued more marketable notwithstanding that such covenants, acts or things may not be enumerated herein; and any other matters of like or different character, which in any way affect the security or protection of the bonds or notes, all as the authority shall deem advisable and not in conflict with the provisions hereof. Each pledge, agreement, mortgage and deed of trust made for the benefit or security of any of the bonds or notes of the authority shall be in effect until the principal of and interest on the bonds or notes for the benefit of which the same were made have been fully paid, or until provision has been made for payment in the manner provided in the resolution or resolutions authorizing their issuance. Any pledge made in respect of such bonds or notes shall be valid and binding from the time when the pledge is made; the revenues, money or property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority irrespective of whether such parties have notice thereof. Neither the resolution, trust indenture nor any other instrument by which a pledge is created need be recorded. The resolution authorizing the issuance of such bonds or notes may provide for the enforcement of any such pledge or security in any lawful manner. The authority may elect to have the provisions of title 42a of the general statutes, the Connecticut Uniform Commercial Code, apply to any pledge made by or to the authority to secure its bonds or notes by filing a financing statement with respect to the security interest created by the pledge and, in such case, the financing statement shall be filed as if the debtor were located in this state.

(g) The authority may provide in any resolution authorizing the issuance of bonds or notes that any project or part thereof or any addition, improvement, extension or enlargement thereof, may be constructed by the authority or the lessee or any designee of the authority, and may also provide in such proceedings for the time and manner of and requisites for disbursements to be made for the cost of such construction and disbursements as the authority shall deem necessary or appropriate.

(h) The authority is further authorized and empowered to issue bonds, notes or other obligations under this section, the interest on which may be includable in the gross income of the holder or holders thereof under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, to the same extent and in the same manner that interest on bills, notes, bonds or other obligations of the United States is includable in the gross income of the holder or holders thereof under any such internal revenue code. Any such bonds, notes or other obligations may be issued only upon a finding by the authority that such issuance is necessary, is in the public interest, and is in furtherance of the purposes and powers of the authority. The state hereby consents to such inclusion only for the bonds, notes or other obligations of the authority so authorized.

Sec. 6. (NEW) (Effective October 1, 2009) (a) Except as provided in subsection (b) of this section, all moneys of the Connecticut Electric Authority, from whatever source derived, shall be paid to the Treasurer as agent of the authority, who shall not commingle such moneys with any other moneys. The Treasurer shall deposit such moneys in a separate bank account or accounts. The moneys in such accounts shall be paid by checks signed by the Treasurer or the Deputy Treasurer appointed pursuant to section 3-12 of the general statutes, on requisition of the chairperson or of such other officer or employee of the authority as the authority shall authorize to make such requisition. Notwithstanding the foregoing, the authority shall have power, subject to the approval of the Treasurer or the Deputy Treasurer appointed pursuant to said section 3-12, to contract with the holders of any of its bonds or notes, as to the custody, collection, securing, investment and payment of any moneys of the authority, or of any moneys held in trust or otherwise for the payment of bonds or notes, and to carry out such contracts. All moneys received pursuant to the authority of the authority legislation pursuant to sections 5 to 10, inclusive, of this act whether as proceeds from the sale of bonds or as revenues, receipts or income, shall be deemed to be trust funds to be held and applied solely as provided in said authority legislation and in the resolutions authorizing the issuance of the bonds or notes. Any officer with whom, or any bank or trust company with which, such moneys shall be deposited as trustee thereof shall hold and apply the same for the purposes thereof, subject to said provisions of the authority and the resolution authorizing the issuance of bonds or notes or the trust agreement securing such bonds or notes may provide.

(b) Any funds or revenues of the authority derived from application fees, commitment fees or other fees or charges levied by the authority in connection with its insurance and loan programs, any investment income derived from funds held in trust or otherwise, which income is not pledged to the payment of bonds or notes of the authority and any other income of the authority from whatever source derived that is available for the payment of authority expenses and any proceeds of the foregoing shall be held, administered and invested by the authority or deposited with and invested by such institution, trustee, fiduciary or other custodian as may be designated by the authority and paid as the authority shall direct.

Sec. 7. (NEW) (Effective October 1, 2009) The exercise of the powers granted to the Connecticut Electric Authority in sections 5 to 10, inclusive, of this act shall constitute the performance of an essential governmental function and the authority shall not be required to pay any taxes or assessments upon or in respect of a project, or any property or moneys of the authority, levied by any municipality or political subdivision or special district having taxing powers of the state, nor shall the authority be required to pay state taxes of any kind, and the authority, its projects, property and moneys and any bonds and notes issued under the provisions of said sections, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the state and by the municipalities and all other political subdivisions or special districts having taxing powers of the state; provided any person leasing a project from the authority shall pay to the municipality, or other political subdivision or special district having taxing powers, in which such project is located, a payment in lieu of taxes which shall equal the taxes on real and personal property, including water and sewer assessments, which such lessee would have been required to pay had it been the owner of such property during the period for which such payment is made and neither the authority nor its projects, properties, money or bonds and notes shall be obligated, liable or subject to lien of any kind for the enforcement, collection or payment thereof. The sale of tangible personal property or services by the authority is exempt from the sales tax under chapter 219 of the general statutes, and the storage, use or other consumption in this state of tangible personal property or services purchased from the authority is exempt from the use tax under said chapter 219. If and to the extent the proceedings under which the bonds authorized to be issued under the provisions of said sections so provide, the authority may agree to cooperate with the lessee of a project in connection with any administrative or judicial proceedings for determining the validity or amount of such payments and may agree to appoint or designate and reserve the right in and for such lessee to take all action which the authority may lawfully take in respect of such payments and all matters relating thereto, provided such lessee shall bear and pay all costs and expenses of the authority thereby incurred at the request of such lessee or by reason of any such action taken by such lessee in behalf of the authority. Any lessee of a project which has paid the amounts in lieu of taxes required by this section to be paid shall not be required to pay any such taxes in which a payment in lieu thereof has been made to the state or to any such municipality or other political subdivision or special district having taxing powers, any other statute to the contrary notwithstanding.

Sec. 8. (NEW) (Effective October 1, 2009) Bonds issued by the Connecticut Electric Authority are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, credit unions, building and loan associations, investment companies, savings banks, banking associations, trust companies, executors, administrators, trustees and other fiduciaries and pension, profit-sharing and retirement funds may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or municipality of the state for any purpose for which the deposit of bonds or obligations of the state is now or may hereafter be authorized by law.

Sec. 9. (NEW) (Effective October 1, 2009) (a) Bonds or notes issued by the Connecticut Electric Authority shall not be deemed to constitute a debt or liability of the state or of any municipality thereof or a pledge of the faith and credit of the state or of any such municipality and shall not constitute bonds or notes issued or guaranteed by the state within the meaning of section 3-21 of the general statutes, but shall be payable solely from the revenues and funds herein provided for pursuant to sections 5 to 10, inclusive, of this act. All such bonds or notes shall contain on the face thereof a statement to the effect that neither the state nor any municipality thereof other than the authority shall be obligated to pay the same or the interest thereon and that neither the faith and credit nor the taxing power of the state or of any municipality is pledged to the payment of the principal of or the interest on such bonds or notes.

(b) The authority may create and establish one or more reserve funds to be known as special capital reserve funds and may pay into such special capital reserve funds (1) any moneys appropriated and made available by the state for the purposes of such funds, (2) any proceeds of sale of notes or bonds, to the extent provided in the resolution of the authority authorizing the issuance thereof, and (3) any other moneys which may be made available to the authority for the purpose of such funds from any other source or sources. The moneys held in or credited to any special capital reserve fund established under this section, except as hereinafter provided, shall be used solely for the payment of the principal of bonds of the authority secured by such special capital reserve fund as the same become due, the purchase of such bonds of the authority, the payment of interest on such bonds of the authority or the payment of any redemption premium required to be paid when such bonds are redeemed before maturity; provided the authority shall have power to provide that moneys in any such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such funds to less than the maximum amount of principal and interest becoming due by reason of maturity or a required sinking fund installment in the succeeding calendar year on the bonds of the authority then outstanding and secured by such special capital reserve fund or such lesser amount specified by the authority in its resolution authorizing the issuance of any such bonds, such amount being herein referred to as the "required minimum capital reserve", except for the purpose of paying such principal of, redemption premium and interest on such bonds of the authority secured by such special capital reserve becoming due and for the payment of which other moneys of the authority are not available. The authority may provide that it shall not issue bonds at any time if the required minimum capital reserve on the bonds outstanding and the bonds then to be issued and secured by a special capital reserve fund will exceed the amount of such special capital reserve fund at the time of issuance, unless the authority, at the time of the issuance of such bonds, shall deposit in such special capital reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which, together with the amount then in such special capital reserve fund, will be not less than the required minimum capital reserve. On or before December first, annually, there is deemed to be appropriated from the General Fund such sums, if any, as shall be certified by the chairperson of the Connecticut Electric Authority to the Secretary of the Office of Policy and Management and State Treasurer, as necessary to restore each such special capital reserve fund to the amount equal to the required minimum capital reserve of such fund, and such amounts shall be allotted and paid to the authority. For the purpose of evaluation of any such special capital reserve fund, obligations acquired as an investment for any such fund shall be valued at amortized cost. Nothing contained in this section shall preclude the authority from establishing and creating other debt service reserve funds in connection with the issuance of bonds or notes of the authority. Subject to any agreement or agreements with holders of outstanding notes and bonds of the authority, any amount or amounts allotted and paid to the authority by the state pursuant to this section shall be repaid to the state from moneys of the authority at such time as such moneys are not required for any other of its corporate purposes and in any event shall be repaid to the state on the date one year after all bonds and notes of the authority theretofore issued on the date or dates such amount or amounts are allotted and paid to the authority or thereafter issued, together with interest on such bonds and notes, with interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the holders thereof, are fully met and discharged. Notwithstanding any other provisions contained in said sections, the aggregate amount of bonds secured by such special capital reserve funds authorized to be created and established by this section, shall not exceed four hundred fifty million dollars. Only electric generation projects may be assisted or financed by such bonds and the proceeds of such bonds shall not be used for such purpose unless the authority is of the opinion and determines that the revenues derived from the electric generation project or projects shall be sufficient (1) to pay the applicable principal of and interest on the bonds, the proceeds of which are used to finance the electric generation project or projects, (2) to establish, increase and maintain any reserves deemed by the authority to be advisable to secure the payment of the principal of and interest on such bonds, (3) unless the contract with a person obligates such person to pay for the maintenance and insurance of the electric generation project, to pay the cost of maintaining the electric generation project in good repair and keeping it properly insured, and (4) to pay such other costs or taxes on the electric generation project as may be required.

Sec. 10. (NEW) (Effective October 1, 2009) The state of Connecticut does hereby pledge to and agree with the holders of any bonds and notes issued under the provisions of sections 5 to 10, inclusive, of this act, and with those parties who may enter into contracts with the Connecticut Electric Authority or its successor agency, that the state will not limit or alter the rights hereby vested in the authority until such obligations, together with the interest thereon, are fully met and discharged and such contracts are fully performed on the part of the authority, provided nothing contained herein shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the holders of such bonds and notes of the authority or those entering into such contracts with the authority. The authority may include this pledge and undertaking for the state in such bonds and notes or contracts.

Sec. 11. Subsection (c) of section 16-244c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(c) (1) On and after January 1, 2007, each electric distribution company shall provide electric generation services through standard service to any customer who (A) does not arrange for or is not receiving electric generation services from an electric supplier, and (B) does not use a demand meter or has a maximum demand of less than five hundred kilowatts.

(2) Not later than October 1, 2006, and periodically as required by subdivision (3) of this subsection, but not more often than every calendar quarter, the Department of Public Utility Control shall establish the standard service price for such customers pursuant to subdivision (3) of this subsection. Each electric distribution company shall recover the actual net costs of procuring and providing electric generation services pursuant to this subsection, provided such company mitigates the costs it incurs for the procurement of electric generation services for customers who are no longer receiving service pursuant to this subsection.

(3) An electric distribution company providing electric generation services pursuant to this subsection shall mitigate the variation of the price of the service offered to its customers by procuring electric generation services contracts in the manner prescribed in a plan approved by the department. Such plan shall require the procurement of a portfolio of service contracts sufficient to meet the projected load of the electric distribution company. Such plan shall require that the portfolio of service contracts be procured in an overlapping pattern of fixed periods at such times and in such manner and duration as the department determines to be most likely to produce just, reasonable and reasonably stable retail rates while reflecting underlying wholesale market prices over time. The portfolio of contracts shall be assembled in such manner as to invite competition; guard against favoritism, improvidence, extravagance, fraud and corruption; and secure a reliable electricity supply while avoiding unusual, anomalous or excessive pricing. The portfolio of contracts procured under such plan shall be for terms of not less than six months, provided contracts for shorter periods may be procured under such conditions as the department shall prescribe to (A) ensure the lowest rates possible for end-use customers; (B) ensure reliable service under extraordinary circumstances; and (C) ensure the prudent management of the contract portfolio. An electric distribution company may receive a bid for an electric generation services contract from any of its generation entities or affiliates, provided such generation entity or affiliate submits its bid the business day preceding the first day on which an unaffiliated electric supplier may submit its bid and further provided the electric distribution company and the generation entity or affiliate are in compliance with the code of conduct established in section 16-244h.

(4) The [department] Connecticut Electric Authority, in consultation with the Office of Consumer Counsel, shall retain the services of a third-party entity with expertise in the area of energy procurement to oversee the initial development of the request for proposals and the procurement of contracts by an electric distribution company for the provision of electric generation services offered pursuant to this subsection. Costs associated with the retention of such third-party entity shall be included in the cost of electric generation services that is included in such price.

(5) Each bidder for a standard service contract shall submit its bid to the electric distribution company and the third-party entity who shall jointly review the bids, conduct a cost-based analysis of such bids and submit an overview of all bids together with a joint recommendation to the [department] authority as to the preferred bidders. The authority shall make available to the Office of Consumer Counsel and the Attorney General all bids it receives pursuant to this subsection, provided the Office of Consumer Counsel and the Attorney General shall not make the bids available to the public until the authority does so pursuant to subdivision (6) of this subsection, except that the Attorney General may share such information if such action is necessary for any law enforcement purposes. The [department] authority may, [within] not later than ten business days [of] after submission of the overview, reject the recommendation regarding preferred bidders if the bids are not in the best interest of the Electric Distribution company's customers. In analyzing the bids, the authority shall determine if they are consistent with the state's integrated resource plan. In the event that the department rejects the preferred bids, the electric distribution company and the third-party entity shall rebid the service pursuant to this subdivision.

(6) Upon the authority's approval of the preferred bids, the electric distribution company shall enter into contracts with approved bidders. All bids received by the authority during the procurement process shall be available for public review six months after authority rejection.

(7) Not later than October 1, 2010, and biennially thereafter, the authority shall conduct a contested case proceeding in accordance with chapter 54 to review the efficacy of the contract procurement process held pursuant to this subsection.

Sec. 12. (NEW) (Effective October 1, 2009) If, on or after July 1, 2008, the Connecticut Electric Authority does not receive and approve proposals pursuant to the request for proposals process established in subsection (c) of section 16-244c of the general statutes, as amended by this act, sufficient to reach the state's goal, the authority shall conduct a contested case proceeding, in accordance with chapter 54 of the general statutes, to perform a needs assessment to determine the total amount and type of energy resource needs, if any, that remain unaddressed. If the authority determines that such needs have been unaddressed, the authority shall conduct a contested case proceeding to determine the costs and benefits of the authority serving as the builder or provider of last resort for the shortfall of megawatts from such request for proposal process, and may issue a request for proposals, pursuant to subsection (c) of section 16-244c of the general statutes, as amended by this act, to electric distribution companies to address the shortfall of new, expanded or repowered eligible generation, including baseload, peaking, renewable, conservation and demand response electric power. Each electric distribution company shall be entitled to recover its prudently incurred costs of such project, including, but not limited to, capital costs, operation and maintenance expenses, depreciation, fuel costs, taxes and other governmental charges, and a reasonable rate of return on equity. The authority shall review such recovery of costs consistent with the principles set forth in sections 16-19, 16-19b and 16-19e of the general statutes, as amended by this act, provided the return on equity associated with such project shall be established in the initial annual contested case proceeding under this section and updated at least once every four years. The authority may request that the electric distribution company submitting a proposal submit further information that the department determines to be in the public interest, which the department may use in evaluating the proposal.

Sec. 13. (NEW) (Effective October 1, 2009) (a) The chairperson of the Connecticut Electric Authority, with the consent of two or more other members of the authority, shall appoint an executive director, who shall be the chief administrative officer of the Connecticut Electric Authority. Said chairperson shall supervise the executive director, who shall serve for a four-year term and annually receive a salary equal to that established for management pay plan salary group seventy-two by the Commissioner of Administrative Services. The executive director (1) shall conduct comprehensive planning with respect to the functions of the authority; (2) shall coordinate the activities of the authority; (3) shall cause the administrative organization of the authority to be examined with a view to promoting economy and efficiency; (4) shall, in concurrence with the chairperson of the authority, organize the authority into such divisions, bureaus or other units as he deems necessary for the efficient conduct of the business of the authority and may from time to time abolish, transfer or consolidate within the authority, any division, bureau or other units as may be necessary for the efficient conduct of the business of the authority, provided such organization shall include any division, bureau or other unit which is specifically required by the general statutes; (5) may enter into such contractual agreements, in accordance with established procedures, as may be necessary for the discharge of his duties; and (6) may, subject to the provisions of section 4-32 of the general statutes, and unless otherwise provided by law, receive any money, revenue or services from the federal government, corporations, associations or individuals, including payments from the sale of printed matter or any other material or services. The executive director shall require the staff of the authority to have expertise in public utility engineering and accounting, finance, economics, computers and rate design. Subject to the provisions of chapter 67 of the general statutes and within available funds in any fiscal year, the executive director may appoint a secretary and may employ such accountants, clerical assistants, engineers, inspectors, experts, consultants and agents as the department may require.

(b) No member of the authority or employee of the authority shall, while serving as such, have any interest, financial or otherwise, direct or indirect, or engage in any business, employment, transaction or professional activity, or incur any obligation of any nature, which is in substantial conflict with the proper discharge of his duties or employment in the public interest and of his responsibilities as prescribed in the laws of this state, as defined in section 1-85 of the general statutes; provided no such substantial conflict shall be deemed to exist solely by virtue of the fact that a member of the authority or employee of the authority, or any business in which such a person has an interest, receives utility service from one or more Connecticut utilities under the normal rates and conditions of service.

(c) No member of the authority or employee of the authority shall accept other employment that will either impair his independence of judgment as to his official duties or employment or require him, or induce him, to disclose confidential information acquired by him in the course of and by reason of his official duties.

(d) No member of the authority or employee of the authority shall wilfully and knowingly disclose, for pecuniary gain, confidential information acquired in the course of and by reason of official duties or employment or use any such information for the purpose of pecuniary gain.

(e) No member of the authority or employee of the authority shall agree to accept, or be in partnership or association with any person, or a member of a professional corporation or in membership with any union or professional association which partnership, association, professional corporation, union or professional association agrees to accept any employment, fee or other thing of value, or portion thereof, in consideration of his appearing, agreeing to appear, or taking any other action on behalf of another person before the authority, the Connecticut Siting Council, the Office of Policy and Management or the Commissioner of Environmental Protection.

(f) No member of the authority shall, for a period of one year following the termination of his or her service as a member, accept employment: (1) By a public service company or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of public service companies; or (2) by an electric supplier or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of electric suppliers. No such member who is also an attorney shall in any capacity, appear or participate in any matter, or accept any compensation regarding a matter, before the authority, for a period of one year following the termination of his or her service as a member.

Sec. 14. Section 16-4 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

No officer, employee, attorney or agent of any public service company, of any certified telecommunications provider or of any electric supplier shall be a member of the Public Utilities Control Authority or the Connecticut Electric Authority or an employee of the Department of Public Utility Control or the Connecticut Electric Authority.

Sec. 15. Subsection (a) of section 16-19ss of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) The [Department of Public Utility Control] Connecticut Electric Authority may, from July 1, 2003, to January 1, 2008, inclusive, determine, by an affirmative vote of four [commissioners of the Public Utilities Control Authority] members of the Connecticut Electric Authority, that (1) safe, adequate and reasonably priced electricity is not available on the wholesale market; (2) additional temporary electric generation facilities will result in reductions in federally mandated congestion costs for which the ratepayers of the state are responsible; and (3) the prices and costs specified in subdivision (2) of this subsection will exceed the cost of investment in temporary electric generation facilities. Such determination shall be in writing and shall state the reasons supporting the determination.

Sec. 16. Subsection (a) of section 16a-3 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) There is established a Connecticut Energy Advisory Board consisting of [fifteen] sixteen members, including the Commissioner of Environmental Protection, the chairperson of the Public Utilities Control Authority, the chairperson of the Connecticut Electric Authority, the Commissioner of Transportation, the Consumer Counsel, the Commissioner of Agriculture, and the Secretary of the Office of Policy and Management, or their respective designees. The Governor shall appoint a representative of an environmental organization knowledgeable in energy efficiency programs, a representative of a consumer advocacy organization and a representative of a state-wide business association. The president pro tempore of the Senate shall appoint a representative of a chamber of commerce, a representative of a state-wide manufacturing association and a member of the public considered to be an expert in electricity, generation, procurement or conservation programs. The speaker of the House of Representatives shall appoint a representative of low-income ratepayers, a representative of state residents, in general, with expertise in energy issues and a member of the public considered to be an expert in electricity, generation, procurement or conservation programs. All appointed members shall serve in accordance with section 4-1a. No appointee may be employed by, or a consultant of, a public service company, as defined in section 16-1, or an electric supplier, as defined in section 16-1, or an affiliate or subsidiary of such company or supplier.

Sec. 17. Subsection (f) of section 22a-198 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(f) The Commissioner of Environmental Protection, in consultation with the chairperson of the [Public Utilities Control] Connecticut Electric Authority, may suspend the prohibition of subsection (b) of this section for a Title IV source if it is determined that the application of the prohibition established under subsection (b) of this section adversely affects the ability to meet the reliability standards, as defined by the New England Power Pool or its successor organization, and the suspension thereof is intended to mitigate such reliability problems. The Commissioner of Environmental Protection, in consultation with the chairperson of the [Public Utilities Control] Connecticut Electric Authority, shall specify in writing the reasons for such suspension and the period of time that such suspension shall be in effect and shall provide notice of such suspension at the time of issuance, or the next business day, to the joint standing committees of the General Assembly having cognizance of matters relating to the environment and energy and technology. No such waiver shall last more than thirty days. The commissioner may reissue additional waivers for such source after said initial waiver has expired. Within ten days of receipt of the commissioner's notice of suspension, the committees having cognizance of matters relating to the environment and energy and technology may hold a joint public hearing and meeting of the committees to either modify or reject the commissioner's suspension by a majority vote. If the committees do not meet, the commissioner's suspension shall be deemed approved.

Sec. 18. (NEW) (Effective October 1, 2009) (a) The Connecticut Electric Authority shall: (1) Represent the state in regional energy system planning processes conducted by the regional independent system operator, as defined in section 16-1 of the general statutes; (2) encourage representatives from the municipalities affected by a proposed project of regional significance to participate in regional energy system planning processes conducted by the regional independent system operator; (3) participate in a forecast proceeding conducted pursuant to subsection (a) of section 16-50r of the general statutes; and (4) participate in a life-cycle proceeding conducted pursuant to subsection (b) of section 16-50r of the general statutes.

Sec. 19. (NEW) (Effective October 1, 2009) (a) The Connecticut Electric Authority may participate in proceedings before agencies of the federal government and the federal courts on matters affecting electric distribution companies, as defined in section 16-1 of the general statutes, electric suppliers, as defined in said section 16-1, or exempt wholesale generators, as defined in said section 16-1.

(b) For any proceeding before the Federal Energy Regulatory Commission, the United States Department of Energy or the United States Nuclear Regulatory Commission, or appeal thereof, the Attorney General, upon request of the Connecticut Electric Authority, may retain outside legal counsel in accordance with section 3-125 of the general statutes to participate in such proceedings on behalf of the department. All reasonable and proper expenses of such outside legal counsel shall be borne by the electric distribution companies, electric suppliers, or exempt wholesale generators affected by the decisions of such proceedings and shall be paid at such times and in such manner as the Connecticut Electric Authority directs, provided such expenses shall be apportioned in proportion to the revenues of each affected entity as reported to the Department of Public Utility Control for purposes of section 16-49 of the general statutes for the most recent period, and provided further such expenses shall not exceed two hundred fifty thousand dollars per proceeding, including any appeals thereof, in any calendar year unless the department finds good cause for exceeding the limit and the affected entities have an opportunity, after reasonable notice, to comment on the proposed overage. The Department of Public Utility Control shall recognize all such legal expenses as proper business expenses of the affected entities for rate-making purposes pursuant to section 16-19e of the general statutes, if applicable.

Sec. 20. Subsection (a) of section 4-65a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) There shall be an Office of Policy and Management which shall be responsible for all aspects of state staff planning and analysis in the areas of budgeting, management, planning, energy policy determination and evaluation, except to the extent such policies are delegated to the Connecticut Electric Authority, intergovernmental policy, criminal and juvenile justice planning and program evaluation. The department head shall be the Secretary of the Office of Policy and Management, who shall be appointed by the Governor in accordance with the provisions of sections 4-5, 4-6, 4-7 and 4-8, with all the powers and duties therein prescribed. The Secretary of the Office of Policy and Management shall be the employer representative (1) in collective bargaining negotiations concerning changes to the state employees retirement system and health and welfare benefits, and (2) in all other matters involving collective bargaining, including negotiation and administration of all collective bargaining agreements and supplemental understandings between the state and the state employee unions concerning all executive branch employees except (A) employees of the Division of Criminal Justice, and (B) faculty and professional employees of boards of trustees of constituent units of the state system of higher education. The secretary may designate a member of the secretary's staff to act as the employer representative in the secretary's place.

Sec. 21. Subdivision (2) of subsection (e) of section 4a-57 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(2) Any purchase of or contract by the department for electric generation services that are subject to competitive bidding and competitive negotiations shall be conducted in cooperation with the [Office of Policy and Management] Connecticut Electric Authority pursuant to section 16a-14e.

Sec. 22. Section 8-37jj of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) The Department of Economic and Community Development may not approve electric resistance as the primary heat source in new, subsidized housing except where justified by a life-cycle cost analysis whose methodology has been approved by the [division of the Office of Policy and Management responsible for energy matters] Connecticut Electric Authority.

(b) If the Department of Economic and Community Development or the Connecticut Housing Finance Authority uses electric resistance space heating as the primary heating source in any new construction, it shall construct the unit in such a way as to be eligible for any available energy conservation incentives provided by the electric company, as defined in section 16-1, or the municipal utility furnishing electric service to such unit.

Sec. 23. Subsection (f) of section 13a-110a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(f) The provisions of this section shall not apply to the installation or replacement of luminaires for which the [Secretary of the Office of Policy and Management] Connecticut Electric Authority (1) conducts a life-cycle cost analysis of one or more luminaires which meet the requirements set forth in subsection (b) of this section and one or more luminaires which do not meet such requirements, and (2) certifies that a luminaire which meets such requirements is not cost effective and is not the most appropriate alternative based on the life-cycle cost analysis.

Sec. 24. Section 16-19e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) In the exercise of its powers under the provisions of this title, the Department of Public Utility Control shall examine and regulate the transfer of existing assets and franchises, the expansion of the plant and equipment of existing public service companies, the operations and internal workings of public service companies and the establishment of the level and structure of rates in accordance with the following principles: (1) That there is a clear public need for the service being proposed or provided; (2) that the public service company shall be fully competent to provide efficient and adequate service to the public in that such company is technically, financially and managerially expert and efficient; (3) that the department and all public service companies shall perform all of their respective public responsibilities with economy, efficiency and care for public safety and energy security, and so as to promote economic development within the state with consideration for energy and water conservation, energy efficiency and the development and utilization of renewable sources of energy and for the prudent management of the natural environment; (4) that the level and structure of rates be sufficient, but no more than sufficient, to allow public service companies to cover their operating costs including, but not limited to, appropriate staffing levels, and capital costs, to attract needed capital and to maintain their financial integrity, and yet provide appropriate protection to the relevant public interests, both existing and foreseeable which shall include, but not be limited to, reasonable costs of security of assets, facilities and equipment that are incurred solely for the purpose of responding to security needs associated with the terrorist attacks of September 11, 2001, and the continuing war on terrorism; (5) that the level and structure of rates charged customers shall reflect prudent and efficient management of the franchise operation; and (6) that the rates, charges, conditions of service and categories of service of the companies not discriminate against customers which utilize renewable energy sources or cogeneration technology to meet a portion of their energy requirements.

(b) The Department of Public Utility Control shall promptly undertake a separate, general investigation of, and shall hold at least one public hearing on new pricing principles and rate structures for electric companies and for gas companies to consider, without limitation, long run incremental cost of marginal cost pricing, peak load or time of day pricing and proposals for optimizing the utilization of energy and restraining its wasteful use and encouraging energy conservation, and any other matter with respect to pricing principles and rate structures as the department shall deem appropriate. The department shall determine whether existing or future rate structures place an undue burden upon those persons of poverty status and shall make such adjustment in the rate structure as is necessary or desirable to take account of their indigency. The department shall require the utilization of such new principles and structures to the extent that the department determines that their implementation is in the public interest and necessary or desirable to accomplish the purposes of this provision without being unfair or discriminatory or unduly burdensome or disruptive to any group or class of customers, and determines that such principles and structures are capable of yielding required revenues. In reviewing the rates and rate structures of electric and gas companies, the department shall take into consideration appropriate energy policies, including those of the state as expressed in subsection (c) of this section. The authority shall issue its initial findings on such investigation by December 1, 1976, and its final findings and order by June 1, 1977; provided that after such final findings and order are issued, the department shall at least once every two years undertake such further investigations as it deems appropriate with respect to new developments or desirable modifications in pricing principles and rate structures and, after holding at least one public hearing thereon, shall issue its findings and order thereon.

(c) The Department of Public Utility Control shall consult at least once each year with the Commissioner of Environmental Protection, the Connecticut Siting Council, the Connecticut Electric Authority and the Office of Policy and Management, so as to coordinate and integrate its actions, decisions and policies pertaining to gas and electric companies, so far as possible, with the actions, decisions and policies of said other agencies and instrumentalities in order to further the development and optimum use of the state's energy resources and conform to the greatest practicable extent with the state energy policy as stated in section 16a-35k, taking into account prudent management of the natural environment and continued promotion of economic development within the state. In the performance of its duties, the department shall take into consideration the energy policies of the state as expressed in this subsection and in any annual reports prepared or filed by such other agencies and instrumentalities, and shall defer, as appropriate, to any actions taken by such other agencies and instrumentalities on matters within their respective jurisdictions.

(d) The Commissioner of Environmental Protection, the Commissioner of Economic and Community Development, the Connecticut Siting Council and the Office of Policy and Management shall be made parties to each proceeding on a rate amendment proposed by a gas, electric or electric distribution company based upon an alleged need for increased revenues to finance an expansion of capital equipment and facilities, and shall participate in such proceedings to the extent necessary. The Connecticut Electric Authority shall be made a party to such proceedings involving electric distribution companies.

(e) The Department of Public Utility Control, in a proceeding on a rate amendment proposed by an electric distribution company based upon an alleged need for increased revenues to finance an expansion of the capacity of its electric distribution system, shall determine whether demand-side management would be more cost-effective in meeting any demand for electricity for which the increase in capacity is proposed.

(f) The provisions of this section shall not apply to the regulation of a telecommunications service which is a competitive service, as defined in section 16-247a, or to a telecommunications service to which an approved plan for an alternative form of regulation applies, pursuant to section 16-247k.

(g) The department may, upon application of any gas or electric public service company, which has, as part of its existing rate plan, an earnings sharing mechanism, modify such rate plan to allow the gas or electric public service company, after a hearing that is conducted as a contested case, in accordance with chapter 54, to include in its rates the reasonable costs of security of assets, facilities, and equipment, both existing and foreseeable, that are incurred solely for the purpose of responding to security needs associated with the terrorist attacks of September 11, 2001, and the continuing war on terrorism.

Sec. 25. Section 16-243k of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

Not later than January [1, 2007, and annually thereafter, the Department of Public Utility Control] first, annually, the Connecticut Electric Authority shall assess the number and types of customer-side and grid-side distributed resources, as defined in section 16-1, projects financed pursuant to the provisions of public act 05-1 of the June special session* and such projects' contributions to achieving fuel diversity, transmission support, and energy independence in the state. Not later than January 1, [2007] 2011, and biennially thereafter, the [department] authority shall collect the information in such annual assessments and report, in accordance with the provisions of section 11-4a, on the effectiveness of the award program established in section 16-243i and on its findings to the joint standing committee of the General Assembly having cognizance of matters relating to energy.

Sec. 26. Subsection (m) of section 16-243m of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(m) An electric distribution company may not submit a proposal under this section on or after February 1, 2011. On or before January 1, 2010, the [department] Connecticut Electric Authority shall submit a report, in accordance with section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to energy with a recommendation as to whether the period during which such company may submit proposals under this section should be extended.

Sec. 27. Subsection (b) of section 16-244d of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(b) There shall be established a Consumer Education Advisory Council which shall advise the outreach program coordinator on the development and implementation of the outreach program until the termination of the standard offer under section 16-244c. Membership of the advisory council shall be established by the Consumer Counsel not later than December 1, 1998, and shall include, but not be limited to, representatives of the Department of Public Utility Control, the Office of Consumer Counsel, the Office of the Attorney General, the Office of Policy and Management, the Connecticut Electric Authority, the Department of Environmental Protection, community and business organizations, consumer groups, including, but not limited to, a group that represents hardship customers, as defined in section 16-262c, as amended by this act, electric distribution companies and electric suppliers. The advisory council shall determine the information to be distributed to customers as part of the education effort such as customers' rights and obligations in a restructured environment, how customers can exercise their right to participate in retail access, the types of electric suppliers expected to be licensed including the possibility of load aggregation, electric generation services options that will be available, the environmental characteristics of different types of generation facilities and other information determined by the advisory council to be necessary for customers. The advisory council shall advise the outreach program coordinator on the methods of distributing information in accordance with subsection (a) of this section and the timing of such distribution. The advisory council shall meet on a regular basis and report to the outreach program coordinator as it deems appropriate until termination of the advisory council's role upon the termination of the standard offer under section 16-244c, as amended by this act.

Sec. 28. Subdivision (5) of subsection (b) of section 16-262c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(5) Each gas and electric distribution company shall submit to the Department of Public Utility Control annually, on or before July first, an implementation plan which shall include information concerning amortization agreements, counseling, reinstatement of eligibility, rate impacts and any other information deemed relevant by the department. The Department of Public Utility Control may, in consultation with the Office of Policy and Management and the Connecticut Electric Authority, approve or modify such plan within ninety days of receipt of the plan. If the department does not take any action on such plan within ninety days of its receipt, the plan shall automatically take effect at the end of the ninety-day period, provided the department may extend such period for an additional thirty days by notifying the company before the end of the ninety-day period. Any amount recovered by a company in its rates pursuant to this subsection shall not include any amount approved by the Department of Public Utility Control as an uncollectible expense. The department may deny all or part of the recovery required by this subsection if it determines that the company seeking recovery has been imprudent, inefficient or acting in violation of statutes or regulations regarding amortization agreements.

Sec. 29. Section 16a-37f of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

A budgeted agency, as defined in section 4-69, shall only purchase replacement light bulbs which (1) are provided under an electric company's customer lighting efficiency program, (2) are equivalent in energy efficiency to bulbs provided under such electric company lighting efficiency program, as determined by the [Secretary of the Office of Policy and Management] Connecticut Electric Authority, in consultation with the Commissioner of Administrative Services, or (3) meet such other life-cycle cost analysis standards as the [Secretary of the Office of Policy and Management] Connecticut Electric Authority, with the concurrence of the Commissioner of Administrative Services, may designate.

Sec. 30. Section 16a-39 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) As used in this section:

(1) "Public building" means any building or portion thereof, other than an "exempted building", which is open to the public during normal business hours, including (A) any building which provides facilities or shelter for public assembly, (B) any inn, hotel, motel, sports arena, supermarket, transportation terminal, retail store, restaurant, or other commercial establishment which provides services or retails merchandise, and (C) any building owned or leased by the state of Connecticut or any political subdivision thereof, or by another state or political subdivision thereof and located in Connecticut, including libraries, museums, schools, hospitals, auditoriums, sports arenas and university buildings;

(2) "Exempted building" means (A) any building whose peak design rate of energy usage for all purposes is less than one watt per square foot of floor area for all purposes, (B) any building with neither a heating nor cooling system, and (C) any building owned or leased in whole or in part by the United States; and

[(3) "Commissioner" means the Commissioner of Public Works or his designee;

(4) "Secretary" means the Secretary of the Office of Policy and Management or his designee; and]

[(5)] (3) "Eligible building" means a building owned by a municipality, located within the state and not used for public education purposes.

(b) The [commissioner] Commissioner of Public Works, after consultation with the [secretary] Connecticut Electric Authority and with such advisory board as said [secretary] authority may appoint, shall adopt, in accordance with chapter 54, regulations establishing lighting standards for all public buildings. The members of any such advisory board shall receive neither compensation nor expenses for the performance of their duties.

(c) The lighting standards adopted pursuant to subsection (b) of this section shall provide for the maximum feasible energy efficiency of lighting equipment commensurate with other factors relevant to lighting levels and equipment, including, but not limited to, the purposes of the lighting, reasonable economic considerations in terms both of initial capital costs and of operating costs including nonenergy operating costs, reasonable budgetary considerations in terms of the feasibility of implementing changes which require a significant capital expenditure in a given time period, any constraints imposed on lighting equipment by the nature of the activities being carried out in the facility involved, considerations involving historic preservation or unusual architectural features, the amount of remaining useful lifetime which a particular structure would be expected to enjoy and the size of the building or portion of the building involved.

(d) The [commissioner] Commissioner of Public Works shall, upon the adoption of the regulations required by subsection (b) of this section, make random inspections of public buildings to monitor compliance with the standards established by such regulations. The [commissioner] Commissioner of Public Works may also inspect any public buildings against which complaints alleging violation of such standards have been received. The operator of a public building or portion thereof shall provide access to such inspectors at any reasonable time, including all times during which the facility is open to the public. If an inspector is denied access to a public building for the purposes of making an inspection in accordance with the provisions of this section, the [commissioner] Commissioner of Public Works may apply to the superior court for the judicial district wherein such building is located for injunctive or other equitable relief. If upon inspection it is determined that the lighting levels in a public building do not conform to such standards, the inspector shall make available to the owner or operator of such building, information regarding such standards and the economic and energy savings expected to result from compliance therewith. The owner or operator of a public building may, after having taken appropriate measures to render such building in compliance with such standards request a reinspection of such building by the [commissioner] Commissioner of Public Works. The [commissioner] Commissioner of Public Works may, upon such request or at his or her own discretion, conduct such reinspection and determine whether or not such building has been brought into compliance with such standards.

(e) The [commissioner] Commissioner of Public Works shall maintain a listing of all public buildings found to be in compliance with the lighting standards adopted pursuant to subsection (c) of this section.

(f) The [secretary] Connecticut Electric Authority may award lighting grants to municipalities for the purpose of improving the energy efficiency of lighting equipment in eligible buildings. All lighting grants shall be awarded based on an application, submitted by a municipality, which sets forth the lighting conservation measures to be implemented. Such measures shall meet the standards established pursuant to subsection (b) of this section and be consistent with the state energy policy, as set forth in section 16a-35k. When evaluating the applications submitted pursuant to this section and determining the amount of a lighting grant, the [secretary] Connecticut Electric Authority shall consider the energy savings and the payback period for the measures to be implemented and any other information which the [secretary] Connecticut Electric Authority deems relevant. The funds for lighting grants shall be provided from proceeds of bonds issued for such purpose. The amount of each grant shall be not less than five thousand dollars but not more than fifty thousand dollars, provided the [secretary] Connecticut Electric Authority may award grants of less than five thousand dollars or more than fifty thousand dollars if the [secretary] Connecticut Electric Authority finds good cause to do so. All public service company incentive payments contributed to any energy conservation project at an eligible building shall be applied to pay the principal cost of that project.

Sec. 31. Section 16a-46a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) The Secretary of the Office of Policy and Management, in consultation with the Connecticut Electric Authority, shall prepare and may from time to time amend a residential energy conservation service plan which implements the program established under section 16a-46, and which complies with applicable federal law. The residential energy conservation service plan shall include, but not be limited to, a designation of the classes of residential buildings that may receive low-cost energy audits during the period covered by the plan.

(b) Prior to implementing any amendments to the residential energy conservation service plan, the secretary shall submit the plan or amendments to the joint standing committee of the General Assembly having cognizance of matters relating to energy planning and activities. The committee may approve or disapprove such plan or amendments at a meeting held not later than sixty days after receipt of the plan or amendments. If the committee takes no action with regard to the plan or amendments during such sixty-day period, they shall be deemed approved. Upon such approval, the secretary shall submit the plans or amendments to the United States Department of Energy.

Sec. 32. Section 16a-46c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

The Department of Public Utility Control shall exercise its regulatory responsibilities as they relate to the residential energy conservation service program within any program guidelines established by the Secretary of the Office of Policy and Management in regulations adopted under section 16a-46 and in the plan authorized under section 16a-46a. The secretary shall consult with the department and the Connecticut Electric Authority in the development of the program. The department, in consultation with the [secretary] chairperson of the Public Utilities Authority, may adopt regulations in accordance with chapter 54 concerning the conduct and administration of the program as it relates to the department's regulatory responsibilities.

Sec. 33. Subsection (d) of section 16a-48 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(d) (1) The office, in consultation with the Department of Public Utility Control and the Connecticut Electric Authority, shall adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section and to establish minimum energy efficiency standards for the types of new products set forth in subsection (b) of this section. The regulations shall provide for the following minimum energy efficiency standards:

(A) Commercial clothes washers shall meet the requirements shown in Table P-3 of section 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4;

(B) Commercial refrigerators and freezers shall meet the August 1, 2004, requirements shown in Table A-6 of said California regulation;

(C) Illuminated exit signs shall meet the version 2.0 product specification of the "Energy Star Program Requirements for Exit Signs" developed by the United States Environmental Protection Agency;

(D) Large packaged air-conditioning equipment having not more than seven hundred sixty thousand BTUs per hour of capacity shall meet a minimum energy efficiency ratio of 10.0 for units using both electric heat and air conditioning or units solely using electric air conditioning, and 9.8 for units using both natural gas heat and electric air conditioning;

(E) Large packaged air-conditioning equipment having not less than seven hundred sixty-one thousand BTUs per hour of capacity shall meet a minimum energy efficiency ratio of 9.7 for units using both electric heat and air conditioning or units solely using electric air conditioning, and 9.5 for units using both natural gas heat and electric air conditioning;

(F) Low voltage dry-type distribution transformers shall meet or exceed the energy efficiency values shown in Table 4-2 of the National Electrical Manufacturers Association Standard TP-1-2002;

(G) Torchiere lighting fixtures shall not consume more than one hundred ninety watts and shall not be capable of operating with lamps that total more than one hundred ninety watts;

(H) Traffic signal modules shall meet the product specification of the "Energy Star Program Requirements for Traffic Signals" developed by the United States Environmental Protection Agency that took effect in February, 2001, except where the department, in consultation with the Commissioner of Transportation, determines that such specification would compromise safe signal operation;

(I) Unit heaters shall not have pilot lights and shall have either power venting or an automatic flue damper;

(J) On or after January 1, 2009, residential furnaces and boilers purchased by the state shall meet or exceed the following annual fuel utilization efficiency: (i) For gas and propane furnaces, ninety per cent annual fuel utilization efficiency, (ii) for oil furnaces, eighty-three per cent annual fuel utilization efficiency, (iii) for gas and propane hot water boilers, eighty-four per cent annual fuel utilization efficiency, (iv) for oil-fired hot water boilers, eighty-four per cent annual fuel utilization efficiency, (v) for gas and propane steam boilers, eighty-two per cent annual fuel utilization efficiency, (vi) for oil-fired steam boilers, eighty-two per cent annual fuel utilization efficiency, and (vii) for furnaces with furnace air handlers, an electricity ratio of not more than 2.0, except air handlers for oil furnaces with a capacity of less than ninety-four thousand BTUs per hour shall have an electricity ratio of 2.3 or less;

(K) On or after January 1, 2010, metal halide lamp fixtures designed to be operated with lamps rated greater than or equal to one hundred fifty watts but less than or equal to five hundred watts shall not contain a probe-start metal halide lamp ballast;

(L) Single-voltage external AC to DC power supplies manufactured on or after January 1, 2008, shall meet the energy efficiency standards of table U-1 of section 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations. This standard applies to single voltage AC to DC power supplies that are sold individually and to those that are sold as a component of or in conjunction with another product. This standard shall not apply to single voltage external AC to DC power supplies sold with products subject to certification by the United States Food and Drug Administration. A single-voltage external AC to DC power supply that is made available by a manufacturer directly to a consumer or to a service or repair facility after and separate from the original sale of the product requiring the power supply as a service part or spare part shall not be required to meet the standards in said table U-1 until five years after the effective dates indicated in the table;

(M) On or after January 1, 2009, state regulated incandescent reflector lamps shall be manufactured to meet the minimum average lamp efficacy requirements for federally-regulated incandescent reflector lamps contained in 42 USC 6295(i)(1)(A). Each lamp shall indicate the date of manufacture;

(N) On or after January 1, 2009, bottle-type water dispensers, commercial hot food holding cabinets, portable electric spas, walk-in refrigerators and walk-in freezers shall meet the efficiency requirements of section 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations. On or after January 1, 2010, residential pool pumps shall meet said efficiency requirements;

(O) On or after January 1, 2009, pool heaters shall meet the efficiency requirements of sections 1605.1 and 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations.

(2) Such efficiency standards, where in conflict with the State Building Code, shall take precedence over the standards contained in the Building Code. Not later than July 1, 2007, and biennially thereafter, the office, in consultation with the Department of Public Utility Control, shall review and increase the level of such efficiency standards by adopting regulations in accordance with the provisions of chapter 54 upon a determination that increased efficiency standards would serve to promote energy conservation in the state and would be cost-effective for consumers who purchase and use such new products, provided no such increased efficiency standards shall become effective within one year following the adoption of any amended regulations providing for such increased efficiency standards.

(3) The office, in consultation with the Department of Public Utility Control, shall adopt regulations, in accordance with the provisions of chapter 54, to designate additional products to be subject to the provisions of this section and to establish efficiency standards for such products upon a determination that such efficiency standards (A) would serve to promote energy conservation in the state, (B) would be cost-effective for consumers who purchase and use such new products, and (C) that multiple products are available which meet such standards, provided no such efficiency standards shall become effective within one year following their adoption pursuant to this subdivision.

Sec. 34. Section 16-245z of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

[Not later than October 1, 2005, the Department of Public Utility Control] The Connecticut Electric Authority and the Energy Conservation Management Board, established in section 16-245m, shall establish links on their Internet web sites to the Energy Star program or successor program that promotes energy efficiency and each electric distribution company shall establish a link under its conservation programs on its Internet web site to the Energy Star program or such successor program.

Sec. 35. Section 16-246e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2009):

(a) The Governor may designate the [Department of Public Utility Control] Connecticut Electric Authority as the agent of the state, subject only to the limitation under subsection (b) of this section, to conduct negotiations and perform all acts necessary to procure electric power capacity, power output from such capacity or both from any out-of-state electric power producer, to transmit it to within the state and to sell or resell it on a nonprofit basis for distribution within the state to electric companies, as defined in section 16-1, municipal electric utilities established under chapter 101, municipal electric energy cooperatives organized under chapter 101a, membership electric cooperatives organized under chapter 597 and such other persons or entities as may be designated by the [governor] Governor. The [department] authority, if designated as such agent, shall arrange for the sale or resale of such power on an equitable basis and in such manner as it finds will most effectively promote the objectives of this title, chapters 101, 101a and 597, and section 16a-35k, subject to any conditions or limitations imposed by the out-of-state electric power producer selling such power. The [department] authority, if so designated, may also enter into any contracts or other arrangements for the sale or resale of such power for transmission outside the state if such sale or resale is reasonably incidental to and furthers the needs of the state and the purposes of this section.

(b) The [department] authority shall submit any final action it takes under subsection (a) of this section to the Governor, who may, not later than sixty days after such submission, disapprove such action by notifying the [department] authority in writing of such disapproval and the reasons for it.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2009

4-5

Sec. 2

October 1, 2009

New section

Sec. 3

October 1, 2009

16-245m

Sec. 4

October 1, 2009

16-245l

Sec. 5

October 1, 2009

New section

Sec. 6

October 1, 2009

New section

Sec. 7

October 1, 2009

New section

Sec. 8

October 1, 2009

New section

Sec. 9

October 1, 2009

New section

Sec. 10

October 1, 2009

New section

Sec. 11

October 1, 2009

16-244c(c)

Sec. 12

October 1, 2009

New section

Sec. 13

October 1, 2009

New section

Sec. 14

October 1, 2009

16-4

Sec. 15

October 1, 2009

16-19ss(a)

Sec. 16

October 1, 2009

16a-3(a)

Sec. 17

October 1, 2009

22a-198(f)

Sec. 18

October 1, 2009

New section

Sec. 19

October 1, 2009

New section

Sec. 20

October 1, 2009

4-65a(a)

Sec. 21

October 1, 2009

4a-57(e)(2)

Sec. 22

October 1, 2009

8-37jj

Sec. 23

October 1, 2009

13a-110a(f)

Sec. 24

October 1, 2009

16-19e

Sec. 25

October 1, 2009

16-243k

Sec. 26

October 1, 2009

16-243m(m)

Sec. 27

October 1, 2009

16-244d(b)

Sec. 28

October 1, 2009

16-262c(b)(5)

Sec. 29

October 1, 2009

16a-37f

Sec. 30

October 1, 2009

16a-39

Sec. 31

October 1, 2009

16a-46a

Sec. 32

October 1, 2009

16a-46c

Sec. 33

October 1, 2009

16a-48(d)

Sec. 34

October 1, 2009

16-245z

Sec. 35

October 1, 2009

16-246e

Statement of Purpose:

To establish the Connecticut Electric Authority to coordinate the state's electricity needs and conservation efforts.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]